diff --git a/changelog.d/ar-gross-income-pass-through.fixed.md b/changelog.d/ar-gross-income-pass-through.fixed.md new file mode 100644 index 00000000000..32f631b07dc --- /dev/null +++ b/changelog.d/ar-gross-income-pass-through.fixed.md @@ -0,0 +1 @@ +Count estate and trust income (AR1000F line 19) and Schedule F farm income (line 20) in Arkansas gross income. diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml index d7d5f35a8b8..4d192dde4e8 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/individual.yaml @@ -15,7 +15,9 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F # Act 141 of 2017 added unemployment compensation to gross income for tax # years beginning on or after January 1, 2018. Act 154 of 2021 then exempted # it for calendar years 2020 and 2021, after which it is taxable again. @@ -33,7 +35,9 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 2020-01-01: - irs_employment_income # Line 8 @@ -49,7 +53,9 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F 2022-01-01: - irs_employment_income # Line 8 - self_employment_income # Line 8 @@ -68,7 +74,9 @@ values: - keogh_distributions # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 metadata: diff --git a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml index 4ab038de44b..6b2b31ccd5d 100644 --- a/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml +++ b/policyengine_us/parameters/gov/states/ar/tax/income/gross_income/sources/joint.yaml @@ -15,7 +15,9 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F # Act 141 of 2017 added unemployment compensation to gross income for tax # years beginning on or after January 1, 2018. Act 154 of 2021 then exempted # it for calendar years 2020 and 2021, after which it is taxable again. @@ -33,7 +35,9 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 2020-01-01: - irs_employment_income # Line 8 @@ -49,7 +53,9 @@ values: - taxable_pension_income # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F 2022-01-01: - irs_employment_income # Line 8 - self_employment_income # Line 8 @@ -68,7 +74,9 @@ values: - keogh_distributions # Line 18 - disability_benefits # Line 18b - rental_income # Line 19 - - farm_rent_income # Line 20 + - estate_income # Line 19 + - farm_rent_income # Line 19, Form 4835 rent is reported on Schedule E + - farm_operations_income # Line 20, Schedule F - unemployment_compensation # Line 21 metadata: diff --git a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml index e77451e2317..0b095676ec0 100644 --- a/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml +++ b/policyengine_us/tests/policy/baseline/gov/states/ar/tax/income/ar_gross_income_indiv.yaml @@ -160,3 +160,24 @@ output: ar_gross_income_indiv: 33_000 ar_gross_income_joint: 33_000 + +- name: Arkansas gross income includes estate and trust income (AR1000F line 19) + period: 2024 + input: + irs_employment_income: 50_000 + estate_income: 20_000 + state_code: AR + output: + ar_gross_income_indiv: 70_000 + ar_gross_income_joint: 70_000 + +- name: Arkansas gross income includes Schedule F farm income (AR1000F line 20) + period: 2024 + input: + irs_employment_income: 50_000 + farm_operations_income: 20_000 + state_code: AR + output: + ar_gross_income_indiv: 70_000 + ar_gross_income_joint: 70_000 +